Calls-in-arrears is shown in Balance Sheet as: MCQ with Answer and Explanation

Question

Share Report Error

Calls-in-arrears is shown in Balance Sheet as:

A. Current asset

B. Current liability

C. Deduction from share capital

D. Addition to share capital

Answer: Option C

Solution (By JKSSB Mock Tests)

Calls-in-arrears represents unpaid amount on shares, deducted from called-up capital in Balance Sheet.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Earnings Per Share' (EPS) as per AS 20 is computed as:

A. Gross profit / Number of shares

B. Net profit / Number of equity shares outstanding

C. Net profit before preference dividend / Equity shares

D. EBIT / Shares

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Correct Answer: Option B

Explanation:
Basic EPS = (Net profit - Preference dividend) / Weighted average equity shares.

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Question #2

The 'Cost of Goods Sold' in a manufacturing company includes:

A. Selling expenses

B. Total manufacturing cost adjusted for WIP

C. Only direct material

D. Prime cost

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Correct Answer: Option B

Explanation:
COGS for manufacturer = Opening finished goods + Cost of production - Closing finished goods. Cost of production = total manufacturing cost + opening WIP - closing WIP.

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Question #3

The 'Rotation of Audit Partners' for listed companies is required every:

A. No rotation

B. 10 years

C. 5 years

D. 7 years (as per Companies Act 2013, audit firm rotation for certain companies, partner rotation for listed companies)

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Correct Answer: Option D

Explanation:
Companies Act 2013 mandates partner rotation for listed companies.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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